Vaughan Gething MS, Minister for Economy
Welsh Government has been informed that two Swansea based companies have confirmed their intention to close operations in Gorseinon over the coming 18 - 24 months, resulting in a loss of some 300 jobs. This is clearly disappointing news for the area and will be a worrying time for workers at both companies, their families and the local community and we are ready to do all we can to support staff affected by these decisions.
Toyoda Gosei have advised us that they are progressing their proposal to confirm the closure of the company’s Swansea site, following a period of consultation with staff and Unions. The proposal is being made in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand. Further, we understand this proposal, which is likely to take effect from end of 2022 into 2023, will impact on the 228 staff currently at the site.
We have also been informed by 3M of their intention to close their facility at Gorseinon Road, Penllergaer, with the loss of 89 positions. We understand that the decision has been made on the basis of ongoing underutilisation of the site impacted by changes in the markets it serves, namely the personal care industry, the collision aftermarket and vehicle repair centres. Over the next 24 months, the manufacturing operations will be re located to existing 3M facilities worldwide.
Details of the support available through the Working Wales and ReAct programmes have been made available to both companies and we remain in ongoing contact with the companies to support staff impacted by the decisions, working in close collaboration with the local authority. Meanwhile, Welsh Government will continue to work with wide ranging partners in the Swansea City Region to take forward our ambitions which have been clearly set out in our Programme for Government and align with our Resilience and Reconstruction Mission founded on a prosperous, green and equal economy.
This statement is being issued during recess in order to keep members informed. Should members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.